Hillsboro City Council signs off on committee recommendation for elected officials' insurance benefits

After several recent meetings of the Hillsboro Civil Service and Employee Relations committee, Hillsboro City Council passed an emergency ordinance to clarify health insurance eligibility and benefits for public officials during their Thursday, Oct. 12 meeting.

The ordinance “clarifying eligibility and benefits for elected officials and declaring an emergency” passed by a 6-1 vote, after a 6-1 vote to suspend the three-reading rule, with council member Adam Wilkin voting no on both motions.

Prior to the vote, chair Dan Baucher recapped his committee’s Oct. 2 and Oct. 9 meetings.

As previously reported, Hillsboro Law Director Randalyn Worley had asked in February for the employee handbook policies on health insurance, as well as overtime, to be placed in the Civil Service and Employee Relations committee.  

The committee met in March to begin reviewing insurance for elected officials, according to Baucher, but at that time the issue “was tabled until more data is acquired.” They met again Sept. 5 and discussed “eligibility and concerns” regarding health insurance. According to Baucher, in September the committee had tentatively “made the recommendation that no elected official was eligible for health insurance” because they believed there was no legislation to support it.

On Oct. 2, discussions continued, but the matter was still not resolved. Among the topics debated Oct. 2 was whether legislation discovered in the past month can support paying for health insurance coverage and whether officials should be given 100-percent coverage or pay for 15 percent, as other city employees do. It was repeatedly asked of the committee, by several city staff members, to “keep it status quo” and let the elected officials receive free health insurance.

Also discussed Oct. 2 was the fact that a 1983 ordinance was originally used as the basis for providing insurance benefits, while an ordinance approved in 2015 amended that section of the city’s code and no longer includes that provision.

After having the issue on their agenda for seven months, the committee members voted 3-0 Oct. 9 to recommend changing the current 100-percent coverage to offering health insurance at a 15-percent rate (city covers the other 85 percent) for elected officials (auditor, judge, law director, mayor, treasurer); and removing the provision for payouts for officials declining the insurance.

The ordinance approved Thursday says the officials “shall be provided hospitalization, major medical and other health insurance of the same quality and upon the same terms as the salaried employees of the city, except that such elected officials shall not receive opt-out pay for declining health insurance coverage.

“Increases in coverage, different terms and increased premium costs shall not be deemed increases in salary during the term of the aforesaid elected officials,” the ordinance says. “In the event any elected official opts out of health insurance coverage, opt-out pay shall not be available to any elected official.”

The ordinance was proposed as an emergency “to clarify the eligibility of benefits for elected officials during the open enrollment period for the city’s health insurance provider,” the legislation says.

After hearing the legislation’s first reading, Hillsboro auditor Dawson Barreras asked for the reasoning behind removing payout options for elected officials, when it is still in effect for city employees.

“Our committee just thought that they shouldn’t be able to receive the opt-out pay, since they’re elected officials,” Baucher said. “For the city employees, there's already an ordinance for them to receive opt out pay.”

Council member Jo Sanborn asked Baucher to clarify the “main difference from what was previously” in effect.

“There was no ordinance specifying the elected officials who were eligible to receive the insurance,” Baucher said, and had not been since 2015.

“So we’re changing the insurance for elected officials to be the same as city employees,” Barreras said. “I guess I'm just confused as to why they wouldn’t received the opt-out pay, just like the city employees do as well.”

Council member Don Storer echoed a comment similar to one he made earlier in the week at the Oct. 9 committee meeting.

“Our main thing was if you’re opting out, apparently you have a better deal somewhere else,” Storer said. “We don't think the taxpayers should be funding that.”

“What about city employees?” Barreras asked.

Storer said that it was “cheaper to give them the buyout in the long run.”

“I just didn’t understand the difference between city employees and elected officials, I guess,” Barreras said for a fourth time.

After that discussion, council president Tom Eichinger called for a vote, with the legislation passing by the 6-1 margin.

In other legislation updates:

A resolution to adopt a proposed 2024 tax budget for the City of Hillsboro was approved by a 7-0 vote after its first reading.

Prior to the regular council meeting, a brief tax budget hearing was held. There were no questions from council or the public at the tax budget hearing.

“We’re a little late presenting it to council,” Barreras said. “Most of that had to do with the new software that was purchased this year.

“It’s all done now and should roll right into the 2024 actual budget.”

The 2024 tax budget lists general fund totals of $6,433,250. The current-year budget for the general fund is $6,218,250.

Eichinger added that this is “simply a summary of what is required to be turned into the county and the state every year and is not the final budget that is voted on by council.”

Eichinger also placed the 2024 budget in the finance committee for discussion as soon as Barreras has it ready.

Council approved several other resolutions and ordinances presented by the city auditor for various payments and appropriations.

The first two were resolutions approving ‘then and now’ certifications for the payment of phase III storm sewer projects to Distel Construction, in the amount of $356,473.76, and DLZ (for engineering costs), in the amount of $18,246.89.

“This is really to make a timely payment that was kind of missed before,” Barreras said.

The third and fourth resolutions were also for “then and now” certifications for payment, with both of these for the Beech Street area project. One was a $15,100 payment to the Ohio treasurer, and the other was $3,193.75 to DLZ.

“We are taking measures to combat that to further avoid any ‘then and nows’ in the future,” Barreras said. “Obviously, this is a couple too many.”

Sanborn asked if there was a given a set “day window” to make the payments. Barreras said the issue was more due to the purchase orders expiring because of the length of the projects.

“Most of these were done probably last year, or maybe earlier in the year, and what happened is the POs expired,” Barreras said. “We had to open another PO, which then causes a ‘then and now,’ which has to be approved by council.”

Also approved was an ordinance making supplemental appropriations in the amount of $80,000 for the Beech Street project.

“This is just allowing me to move money from one fund into a separate line to be able to correctly make the payments for the Beech Street then and now,” Barreras said. “We have the money to make the payment; I just can't legally move the money without council approval.”

Council heard the first reading of an ordinance amending section 34.079 of the codified ordinances of the City of Hillsboro pertaining to income tax regulations.

The only change was to add “the income of individuals under 18 years of age” under exemptions for the city’s income tax.

“House Bill 33 went into effect October 3,” Worley said. “As part of that house bill, individuals under the age of 18 are exempt from municipal income tax, and that begins in tax year 2024. This modifies our codified ordinances to define individuals under the age of 18, their income, as exempt. We're just complying with the recent code changes.”

A resolution transferring real property to the Hillsboro Community Improvement Corporation had its first reading.
The proposed transfer is a “a 1.597-acre tract of land owned by the City of Hillsboro” at 254 West Main Street. Safety and Service Director Brianne Abbott said the transfer is “for economic development purposes.”

Council also heard the first reading of an ordinance to authorize and direct the Safety and Service Director to enter into an agreement with the Highland County Commissioners to provide for indigent defendant counsel in the courts for calendar year 2024. This is a standard annual ordinance.

“Typically, we see this agreement in January, and you have to pass it as an emergency,” Abbott said. “Whitney [Aliff, clerk of council] so graciously got the agreement for us early so it can go through the three readings this year.”

An ordinance repealing sections 32.038, 32.040, 32.042 and 32.043 of the codified ordinances of the City of Hillsboro passed by a 7-0 vote after its third reading, with no discussion.

Abbott said in August the ordinance was introduced to remove “several sections of the current city code” that contradict the collective bargaining agreement with the Hillsboro Police Department.

Council also heard the second readings of the following legislation:

• An ordinance amending section 34.17 of the codified ordinances of the City of Hillsboro pertaining to the Clerk of Council.

• An ordinance modifying the zoning classification of parcel 25-14-101-003.00. A brief public hearing on the proposal was held Thursday, with Eichinger saying the city received “several pieces of feedback.”

• An ordinance amending certain language referencing the tax commissioner and deputy tax commissioner in the codified ordinances of the City of Hillsboro.

In other discussion:

• In economic development updates, Abbott reported 10 commercial and 19 residential building permits issued by the city in the month of September. Recent business openings included Papa John’s, the Patriot Public House, Sassafras Kitchen and Starbucks, and the city is working with other developers.

“Marshalls department store and Five Below have received some building inspections and are in the process of hiring,” Abbott said. “The city is awaiting building permits on the Marriott Hotel project, following the completion of the funding.”

For an update on city events, Abbott said the final farmers’ market in uptown Hillsboro was set for Oct. 14, while the city is also hosting Jeepers Creepers is Oct. 20 from 5-10 p.m. at Crossroads Park.

Abbott also told council that at their most recent meeting, the Hillsboro Planning Commission “reviewed a site plan and also approved a COA [Certificate of Appropriateness] for a mural.”

• Along with the Johnson Street issue (see other council story), chair Wilkin reported that the street/safety committee discussed security of city parks at their Sept. 20 meeting.

“I asked the police chief to come,” Wilkin said. “With much discussion between him, our public works superintendent Shawn Adkins and the committee members about the problems we faced currently, it was decided that our focus at this time will be on Shaffer Park, as this is where we’ve had the most problems.”

Wilkin said that Adkins was asked to “seek out pricing for security equipment,” which will be reviewed the next time the committee meets.

• Utilities committee chair Greg Maurer reported that information on the electricity aggregation program was sent out to city residents, with an opt-out deadline of Oct. 6.

“It’ll take effect on the meter reading come November,” he said.

In June, council approved an emergency ordinance approving a plan of operation and governance for the municipal electric aggregation program. The ordinance was in response to the ballot issue on aggregation approved by voters in the May primary election.

The goal of the program is to allow participants to have lower energy rates. Participation is voluntary.

Eichinger asked if Maurer could get “a number of households that opted in” to the program. Maurer said he would “reach out” and report back.

• Under citizens’ comments, Hillsboro business owner Rachelle Trefz asked for “updates on additional parking uptown or parking enforcement.” This is the third straight month citizens’ comments have dealt with parking in the uptown district.

“All I can say about that is that it's really an issue for city administration to address, and they are looking to address it and working on it,” Eichinger said. “If they had some answers as yet, I would expect that they would have already communicated it.”

Hillsboro Mayor Justin Harsha agreed, saying that the city is still looking into options.

“We're still having conversations on the two-hour parking enforcement, and looking at some different systems,” Harsha said. “We had a Zoom call with a company the other day, for a handheld device. We're also looking into getting more information on video cameras.

“As far as additional parking, nothing yet. I think I told you before, there's some possibilities, but nothing has been determined yet. We're working on it.”

• Council received notification from the Ohio Division of Liquor Control regarding a liquor license renewal for Arsana LLC (Ninja Japanese Steakhouse). There was no objection from council members, so Eichinger said they would “process the approval and send it back to the state.”

For more from Thursday's meeting, see the story at: https://highlandcountypress.com/new-roberts-lane-extension-map-presente….